State Street (STT)
NYSE:STT
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State Street
(NYSE:STT)
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Rating:66Neutral
Price Target:
$133.00
â–¼(-4.60% Downside)
Action:ReiteratedDate:04/01/26
The score is driven primarily by solid profitability and improving balance-sheet positioning but meaningfully offset by highly inconsistent cash flow. A constructive earnings call and supportive valuation help, while technical signals remain mixed and do not confirm strong near-term momentum.
Positive Factors
Scale: Record asset and inflow growth
Material asset scale and sustained net inflows expand fee-bearing balances and reinforce recurring revenue. Larger AUCA/AUM improves pricing leverage, cross-sell opportunities across custody, securities finance and SSGA, and creates persistent economies of scale that support durable fee income.
Negative Factors
Highly inconsistent cash generation
Volatile OCF/FCF undermines the predictability of shareholder distributions, debt paydown and strategic spending. Even with strong earnings some years, erratic cash conversion complicates capital planning and raises execution risk for multi-year investments and buyback pacing.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale: Record asset and inflow growth
Material asset scale and sustained net inflows expand fee-bearing balances and reinforce recurring revenue. Larger AUCA/AUM improves pricing leverage, cross-sell opportunities across custody, securities finance and SSGA, and creates persistent economies of scale that support durable fee income.
Read all positive factors
State Street (STT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.86B
Dividend Yield2.43%
Average Volume (3M)2.08M
Price to Earnings (P/E)12.5
Beta (1Y)1.07
Revenue Growth5.62%
EPS Growth49.49%
CountryUS
Employees52,711
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)2.97
Shares Outstanding278,728,200
10 Day Avg. Volume1,584,351
30 Day Avg. Volume2,083,220
Financial Highlights & Ratios
PEG Ratio0.85
Price to Book (P/B)1.32
Price to Sales (P/S)1.62
P/FCF Ratio8.55
Enterprise Value/Market Cap1.65
Enterprise Value/Revenue2.84
Enterprise Value/Gross Profit4.63
Enterprise Value/Ebitda14.99
Forecast
1Y Price Target
$146.04Price Target Upside4.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)11.89
Revenue Forecast (FY)$14.82B
State Street Business Overview & Revenue Model
Company Description
State Street Corporation, through its subsidiaries, provides a range of financial products and services to institutional investors worldwide. The company offers investment servicing products and services, including custody; product accounting; dai...
How the Company Makes Money
State Street makes money primarily by charging fees and earning spread-based income from providing financial services to institutional clients. A major source of revenue is fee income from investment servicing activities (e.g., custody, fund admin...
State Street Key Performance Indicators (KPIs)
Any
Revenue by Type
Analyzes revenue streams such as fees, interest, and trading income, highlighting the company's diverse income sources and potential vulnerabilities or strengths in its business model.
Analyzes revenue streams such as fees, interest, and trading income, highlighting the company's diverse income sources and potential vulnerabilities or strengths in its business model.
Data provided by:
The Fly
The FlyState Street Earnings Call Summary
Earnings Call Date:Jan 16, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 17, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a strongly positive operational and financial trajectory: record revenues, expanding margins, robust asset growth, solid capital returns, and execution on strategic initiatives (private markets, digital assets, wealth, SaaS transition, and AI-enabled transformation). Management acknowledged near-term headwinds — chiefly the on-prem to SaaS revenue transition, elevated strategic investments pushing expenses higher, some lumpiness in NII drivers, and investor valuation skepticism — but presented a credible plan (productivity savings, balance sheet optimization, and reinvestment) with constructive 2026 guidance. On balance, highlights significantly outweigh the lowlights, as most lowlights are transitional or manageable and key performance metrics and strategic momentum remain strong.Positive Updates
Strong Quarterly and Full-Year EPS Growth
Excluding notable items, fourth-quarter EPS grew 14% year over year and full-year EPS was $10.30, up 19% year over year, reflecting strong revenue growth and margin expansion.
Negative Updates
Decline in Software and Processing Fees
Software and processing fees declined 15% year over year in Q4, primarily due to lower on-premises renewals as the business transitions to SaaS; management expects the migration to SaaS to create near-term lumpiness and to normalize over 1–2 years.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Quarterly and Full-Year EPS Growth
Excluding notable items, fourth-quarter EPS grew 14% year over year and full-year EPS was $10.30, up 19% year over year, reflecting strong revenue growth and margin expansion.
Read all positive updates
Company Guidance
State Street's 2026 outlook (ex‑notables) assumes global equities flat point‑to‑point (daily average roughly +11% YoY) and interest‑rate paths roughly matching two Fed cuts, one BoE cut and no ECB cuts; under those assumptions management expects fee revenue to rise 4–6%, net interest income to be up low single‑digits with net interest margin improving versus 2025, expenses to increase ~3–4% (with productivity and other savings comparable to 2025 — ~$500 million), and positive operating leverage in excess of 100 basis points. Together this guidance implies full‑year pretax margin of roughly 30%, an effective tax rate of about 22%, and a total payout to shareholders of roughly 80% (subject to board approval).State Street Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 22.63B | 21.97B | 18.37B | 13.67B | 12.03B |
| Gross Profit | 13.88B | 12.84B | 11.90B | 12.11B | 12.06B |
| EBITDA | 4.29B | 4.00B | 3.20B | 4.48B | 4.73B |
| Net Income | 2.94B | 2.69B | 1.94B | 2.77B | 2.69B |
Balance Sheet | |||||
| Total Assets | 366.05B | 353.24B | 297.26B | 301.45B | 314.62B |
| Cash, Cash Equivalents and Short-Term Investments | 146.02B | 134.55B | 136.24B | 146.20B | 183.45B |
| Total Debt | 29.80B | 36.79B | 24.37B | 18.27B | 15.18B |
| Total Liabilities | 338.21B | 327.91B | 273.46B | 276.26B | 287.26B |
| Stockholders Equity | 27.84B | 25.33B | 23.80B | 25.19B | 27.36B |
Cash Flow | |||||
| Free Cash Flow | 4.29B | -14.14B | -126.00M | 11.22B | -7.52B |
| Operating Cash Flow | 5.35B | -13.21B | 690.00M | 11.95B | -6.71B |
| Investing Cash Flow | -13.05B | -39.48B | 12.74B | 6.82B | -2.17B |
| Financing Cash Flow | 8.99B | 51.79B | -13.35B | -18.43B | 9.05B |
State Street Technical Analysis
Positive
139.42
Price Trends
126.97
Positive
125.79
Positive
118.27
Positive
Market Momentum
3.02
Negative
73.61
Negative
98.31
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STT, the sentiment is Positive. The current price of 139.42 is above the 20-day moving average (MA) of 126.18, above the 50-day MA of 126.97, and above the 200-day MA of 118.27, indicating a bullish trend. The MACD of 3.02 indicates Negative momentum. The RSI at 73.61 is Negative, neither overbought nor oversold. The STOCH value of 98.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STT.
State Street Risk Analysis
State Street disclosed 1 risk factors in its most recent earnings report. State Street reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
State Street Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $87.62B | 14.74 | 12.66% | 1.71% | 4.22% | 51.01% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $41.29B | 13.05 | 58.14% | 1.26% | 5.76% | 39.77% | |
66 Neutral | $38.86B | 12.46 | 10.76% | 2.43% | 5.62% | 49.49% | |
60 Neutral | $17.08B | 26.29 | 14.18% | 2.30% | -24.62% | 437.16% | |
58 Neutral | $28.36B | 13.74 | 13.45% | 2.21% | -4.52% | 7.01% |
* Financial Sector Average
STT
State Street
139.42
60.72
77.14%
AMP
Ameriprise Financial
446.34
-22.02
-4.70%
BK
Bank of New York Mellon
127.56
51.64
68.02%
CG
Carlyle Group
47.29
11.64
32.65%
NTRS
Northern
152.23
64.63
73.77%
State Street Corporate Events
Executive/Board Changes
State Street Names New Global Controller and CAO
Positive
Mar 31, 2026
On March 27, 2026, State Street Corporation appointed C. Jack Read as Executive Vice President, Global Controller and Chief Accounting Officer, effective August 10, 2026, succeeding Elizabeth M. Schaefer in this key finance and reporting role. Rea...
Executive/Board Changes
State Street Adds Susan Gordon to Board, Committees
Positive
Mar 23, 2026
On March 19, 2026, State Street Corporation appointed Susan Gordon as an independent director to its Board, also naming her to the Examining and Audit Committee and the Technology and Operations Committee. Her election involved no special arrangem...
Business Operations and StrategyFinancial Disclosures
State Street posts strong fourth-quarter results, eyes 2026 growth
Positive
Jan 16, 2026
On January 16, 2026, State Street reported that its fourth-quarter 2025 results capped what management described as a year of strong performance and strategic progress, with Q4 diluted EPS of $2.42, or $2.97 excluding notable items, on total reven...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.